iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
FireEye announced its acquisition of iSIGHT Partners on January 20, 2016, and said the deal had closed six days earlier, on January 14. The headline value was about $200 million in cash, plus up to $75 million in additional cash and stock if iSIGHT met a threat-intelligence bookings target. The deal was intended to combine FireEye and Mandiant’s intelligence from observed attacks with iSIGHT’s broader intelligence on threat actors and emerging threats.
How much did FireEye pay for iSIGHT Partners?
FireEye described the consideration as approximately $200 million in cash at closing and a possible $75 million earnout. The earnout depended on achieving a bookings target for threat-intelligence products and services; it was not an unconditional payment. In its January 20, 2016 announcement, FireEye characterized the contingent amount as payable in cash and equity. FireEye’s Form 8-K specified approximately $41.3 million in cash and about 1.79 million FireEye shares if the target was reached.
The later accounting figures differ from the announced headline amounts because they reflect the recorded values of the consideration. FireEye’s 2016 filing reported $192.8 million in upfront cash consideration, a $39.1 million contingent liability and 1,793,305 shares with an estimated fair value of $29.9 million. These figures describe the accounting at the time, not a revision of the original deal announcement into a guaranteed $275 million payment. FireEye’s 2016 annual filing reports those amounts.
The Tool Desk
Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →When was the acquisition announced and completed?
FireEye announced the acquisition on January 20, 2016, but disclosed that it had already closed on January 14, 2016. The announcement date and closing date are therefore different: the transaction was completed before the public announcement.
#1 Best Overall
Why did FireEye buy iSIGHT Partners?
FireEye said it wanted to combine intelligence drawn from different vantage points. FireEye and Mandiant analyzed activity observed at victim organizations, while iSIGHT provided attacker-focused, “over-the-horizon” intelligence based on its global cyber-threat ecosystem. The aim was to give customers more context about who might be targeting them, why an alert mattered and how threats could affect their industry or region.
FireEye said the combined intelligence would support higher-fidelity alerts, help customers prioritize threats and provide strategic insight for preparing against threats aimed at particular industries or geographies. It also planned new intelligence subscription models tailored to industry verticals. As FireEye chairman and CEO David DeWalt put it, the companies were “fusing victim-based intelligence with attacker-based, over-the-horizon insights derived from iSIGHT’s global cyber-threat ecosystem.” FireEye’s acquisition announcement described the rationale and intended customer benefits.
What capabilities and scale did iSIGHT bring?
FireEye’s January 20, 2016 investor presentation portrayed iSIGHT as an established intelligence business with a global workforce, government and commercial customers, and existing revenue. The figures below are estimates or reported thresholds from that presentation, not current company statistics.
| Measure | Figure reported by FireEye in 2016 |
|---|---|
| Employees and geographic reach | Approximately 350 employees in 17 countries |
| Government customers | More than 250 |
| Commercial customers | More than 90 |
| 2015 billings | About $50 million |
| 2015 revenue | About $40 million |
These numbers provide context for the acquisition: FireEye was buying an operating threat-intelligence business, not only a technology asset. The customer mix, geographic footprint and analyst capabilities complemented the intelligence FireEye already gathered through its own and Mandiant operations.
Rank #3
What did FireEye report after the acquisition?
FireEye later reported that iSIGHT’s operations were included from the January 14 acquisition date. For the three months ended March 31, 2016, iSIGHT contributed $9.4 million in revenue and $2.3 million in net loss, according to FireEye’s 2018 annual filing. Those are the reported contribution figures for that quarter, not a full-year performance measure. FireEye’s 2018 annual filing gives the post-close figures.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to interpret the $275 million headline
The commonly cited $275 million figure adds the approximate $200 million closing cash amount to the maximum announced $75 million earnout. It expresses the deal’s headline potential, not proof that FireEye ultimately paid the entire amount. The closing cash, contingent cash liability and stock consideration were reported separately in FireEye’s filings, and the earnout depended on meeting the bookings condition.
Quick Recap
Best Value
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problems
